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Property in Spain: the Spanish cities offering the best return on investment in 2021

Property in Spain: the Spanish cities offering the best return on investment in 2021
Palma, the capital of the Balearic island of Mallorca, offers the best return for property investors in Spain.Photo: (Photo: Tom Pomodore/Unsplash)
Although the coronavirus crisis hasn’t caused property prices to plummet in Spain, they have dropped considerably in some popular cities, leaving some great investment opportunities for when the market recovers.

It’s fair to say that so far the pandemic hasn’t caused the fall in property prices that house hunters in Spain had hoped for. 

There have however been price drops in coastal locations and other big cities such as Madrid and Barcelona which have been hit hard by the stagnation of Spain’s tourism industry, with resale home prices dropping 5 to 10 percent in many of these areas.

But overall prices are inching upwards again in 2021 – +1.6 percent in January- which means that the window of opportunity may be smaller than forecast, although the success of Spain’s summer tourism season could be crucial to determining this. 

Is it still worth investing in Spanish property?

According to the latest report by Spanish property consultancy firm Atlas Real Estate Analytics, the potential return on investment for those who do is big in some cities.

In March 2021, there were 121,273 properties available in Spain which were below market value. 

In order to find out which Spanish cities offer the best return on investment for to buy-to-sell or buy-to-let investors, the company factored in the properties’ features (state of upkeep, surface area, height, orientation, number of rooms, services offered, etc.), their location and the price at which they are being sold, to then compare it with other similar assets.

“Among the factors that have caused this drop in prices, there is firstly the economic effect of the pandemic and the decrease in direct sales, although, between similar or equal assets, the main difference in price is in the state and maintenance of the property,” explains Atlas Real Estate Analytics.

“The data obtained in this analysis is a great incentive for all types of investors, whether individual buyers or large holders, who seek opportunities in the current context,” says Alejandro Bermúdez, their company CEO.

The following ranking includes their findings for 17 Spanish cities, ordered from highest to lowest in terms of average profit/value increase that can be made in each, as well the number of properties in sale in each city which are below market value and offer these investment opportunities.

Palma de Mallorca: €53,035 profit – 4,392 properties 

(Photo: Thomas H/Pixabay)

Barcelona: €51,675 profit- 21,671 properties 

(Photo: Kaspars Upmanis/Unsplash)

Madrid: €40,881 profit- 23,906 properties 

(Photo: Alex Vasey/Unsplash)

Vigo: €35,731 profit – 4,708 properties 

(Photo: Sergei Gussev/Flickr)

Bilbao: €34,960 profit – 3,143 properties 

(Photo:  Eduardo Kenji Amorim/Unsplash)

Santander: €27,774 profit – 3,043 properties 

(Photo: PublicDomainPictures/Pixabay)

Valencia: €26,211 profit – 13,711 properties 

(Photo: travelnow.or.crylater/Unsplash)

Málaga: €23,688 –  8,368 properties 

(Photo: David Becker/Unsplash)

Valladolid: €21,409 profit – 4,923 properties 

Sevilla: €21,284 profit –  6,312 properties 

(Photo: Joan Oger/Unsplash)

The rest of the list is completed by cities in Spain where the average return on investment when selling a property is likely to be below €20,000:

Oviedo: €19,868 profit –  6,971 properties 

Las Palmas de Gran Canaria: €19,410 profit – 3,073 properties 

Alicante: €19,350 profit – 12,537 properties 

Badajoz: €18,488 profit –  4,515 properties 

Logroño: €16,825 profit –  2,779 properties 

Santa Cruz de Tenerife: €16,657 profit – 2,522 properties 

Zaragoza: €15,678 profit  –  5,930 properties

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Properties in Spain

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